Quantitative study on the Rice Acreage Reduction Program and its alternative policies : An political economy approach 8,用紙番号, 1175198

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According to the government publications, the nominal rate of the Rice Acreage Reduction Program is approximately 40%. In this study, field surveys and direct interviews were conducted in each prefecture and selcted villages, and a real rate of the RARP were estimated. It is estimated that only 10% is the real rate of the acreage reduction and a predited increase of the rice production when the acreage reduction program would be abolished is only 4. 2%. In this case, the decrease of the rice price is estimated as 13. 4%. In order to abolish the program without turbulence, an appropriate income compensational measure is needed. It is estimated that a fixed direct payment of ￥2500/60kg with the 50% degree of decoupling could sustain producers' surplus as the present level and require the government an expense of only 384 billion yen.